Abstract

Findings on the impact of perceived risk and trust in online purchasing are usually based on evidence obtained from the purchase of inexpensive, uncomplicated, and hence low risk products such as books, compact disks (CD’s, DVD’s), or clothing. Antecedents of perceived risk and trust are also not usually addressed in these studies. This study shows that the type of Internet marketing strategy (the place strategy), the buyer’s privacy and security concerns influence a buyer’s perceived risk to purchase gemstones online. Findings also show that perceived risk reduces trust and trust was positively associated with the amount purchased online.